Advanced Micro Devices (AMD) closed the most recent trading day at $64.79, moving -0.05% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.25%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 5.91%.
Heading into today, shares of the chipmaker had lost 16.34% over the past month, lagging the Computer and Technology sector’s loss of 3.63% and the S&P 500’s loss of 2.59% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. In that report, analysts expect Advanced Micro Devices to post earnings of $0.67 per share. This would mark a year-over-year decline of 27.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.53 billion, up 14.5% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.49 per share and revenue of $23.53 billion, which would represent changes of +25.09% and +43.17%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
Investors should also note Advanced Micro Devices’s current valuation metrics, including its Forward P/E ratio of 18.57. This valuation marks a premium compared to its industry’s average Forward P/E of 13.8.
Meanwhile, AMD’s PEG ratio is currently 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Electronics – Semiconductors stocks are, on average, holding a PEG ratio of 1.76 based on yesterday’s closing prices.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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